In a report released today, Sherif El-Sabbahy from Bank of America Securities reiterated a Buy rating on Quanta Services, with a price target of $440.00.
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Sherif El-Sabbahy has given his Buy rating due to a combination of factors that position Quanta Services as a leading entity in the utility services sector. The company is strategically placed to benefit from the rising capital expenditure in utility infrastructure, driven by the need to upgrade aging systems and meet increasing electricity demand. This environment creates a favorable growth trajectory for Quanta, as it stands out as a premier solutions provider capable of handling complex projects.
Moreover, the trend towards outsourcing labor in the utility sector is expected to accelerate, benefiting large firms like Quanta that can offer comprehensive services. As utilities focus on asset management rather than labor deployment, Quanta’s expertise becomes increasingly valuable. The company’s potential to outpace industry growth supports the projection of reaching a $100 billion market capitalization, justifying the raised price objective of $440. This outlook, combined with Quanta’s strong market position, underpins the Buy recommendation.
In another report released on July 14, Stifel Nicolaus also initiated coverage with a Buy rating on the stock with a $411.00 price target.